Lion, an Australian unit of Japanese conglomerate Kirin, has acquired a 9.99% stake in Australia's Warrnambool Cheese & Butter (WCB).
Warrnambool operates two manufacturing facilities in South West Victoria and South Australia with more than 420 staff. It produces a wide of dairy products for domestic and export markets, including cheese, butter and butter blends, milk, cream and dairy ingredients.
Lion has purchased Warrnambool's shares at an average price of A$9.19 each, representing a premium to three separate from Canada's Saputo Australia's Bega Cheese and Murray Goulburn, reported The Wall Street Journal.
The company said that it has enjoyed a close relationship with Warrnambool Cheese & Butter over many years and WCB plays an important role in its cheese business.
It considers this stake a continuation and strengthening of this relationship and plans to use the acquired share to protect the viability of its Coon and Cracker Barrel cheese brands, which are produced by Warrnambool and then wrapped in Lion's adjacent facility.
